CNMI visitor arrivals down 13 percent in May 2011

May 2011 visitor arrivals to the CNMI were down 13 percent compared to May 2010, reflecting fewer bookings from the primary source markets of Japan and Korea following the March 11 earthquake, tsunami, and nuclear crisis in Japan.

According to the Marianas Visitors Authority, arrivals to the islands of Saipan, Tinian, and Rota registered 23,451 visitors last month compared to 27,015 in May 2010.

Overall, visitor arrivals are down 4 percent this fiscal year to 288,388 visitors. Arrivals from Japan dropped 34 percent to 7,567. While cancellations resulting from the Japan crisis tapered off in April, fewer new bookings were made for May. However, based on industry projections, the MVA is optimistic about bookings for the summer period beginning in July. In May 2011 the CNMI received only two daily flights from Narita compared to three daily flights in May 2010, another negative effect on Japan figures.

“The last time arrivals rates from Japan were this low was in 1984, while the last time overall arrivals were this low were in October 2001, right after 9-11,” said MVA managing director Perry Tenorio.

“At that time, Japan accounted for 65 percent of all visitors, so we can see the importance of having diversified our tourism markets. In May 2011 Japan comprised only 32 percent of total arrivals, Korea also comprised 32 percent of arrivals, and the market share of China was 23 percent. China is sustaining our tourism economy in a significant way at this time,” he added.

Meanwhile, arrivals from the primary market of Korea were also strongly influenced by the Japan disaster, dropping 24 percent to 7,303 arrivals. Asiana Airlines decreased the number of daytime flights from Incheon to Saipan from four to two flights weekly from May 17 to July 17, but maintained Boeing 767 service with 250 seats instead of downgrading the aircraft to the Airbus 322 with 177 seats, as originally planned. This resulted in a loss of 1,250 seats during May, which continued into June. Nevertheless, Korea has registered 5 percent growth overall this fiscal year.

The secondary market of China saw 5,383 arrivals in May, a 70-percent increase compared to the same month last year. Sichuan Airlines launched two weekly charter flights each from Shanghai and Guangzhou in May 2011, adding to two existing flights from Shanghai.

Arrivals from the lucrative market of Russia continued to show improvement over last year, rising 6 percent to 324. Visitor arrivals from the United States also rose 62 percent to 1,209 in May, largely due to visits by three military ships. Meanwhile, arrivals were down from Guam (-4 percent to 1,386), the Philippines (-31 percent to 43), and Other Areas (-5 percent to 212).

The Japanese Cabinet maintained its cautious outlook on the economy, attributing the current weakness to the March 2011 earthquake.

The Japanese government is preparing to legally require corporations that use more than 500 kilowatts to reduce their weekday power consumption by 15 percent. Failure to comply can result in fines of up to 1 million yen ($12,300). As a result, a number of auto and other manufacturers have announced plans to give their employees extended summer vacations, which creates new opportunities to promote overseas travel. The Japan Association of Travel Agents’ Visit World Campaign seized this opportunity to move forward with the second phase of its campaign to promote longer trips overseas. JATA began a Japan advertising campaign with messages such as, “stay a bit longer” or “spend an extra night.”

Japan’s outbound travel industry has been fairly resilient to the earthquake, although mainstream destinations such as China, South Korea, the Northern Marianas, and Guam are seeing moderate decreases.

According to the Bank of Korea, Korea’s economy sharply accelerated in the first quarter of 2011 due to robust exports and improving private consumption. Real GDP grew 1.4 percent in the first quarter from a quarter earlier, compared to the 0.5 percent gain in the fourth quarter of 2010, showing positive growth for nine straight quarters. The Organization for Economic Cooperation and Development raised its outlook for Korea’s economic growth to 4.6 percent for this year.

According to the Korea Tourism Organization the number of Korean outbound travelers in April was 867,487, a decrease of 7.3 percent compared to the same month in 2010. The total number of Korean outbound travelers from January to April was 4,095,816, an increase of 4.7 percent compared to the same period of 2010.

The country’s two major airlines, Korean Air and Asiana Airlines, have extended their peak season period in which airfares are raised. The airlines added 19 days and 27 days respectively to the current peak season. [I](MVA)[/I]